How obstacles shape environmental and social sustainability processes in family and non-family firms

This study examines how family ownership influences the adoption of environmental and social sustainability processes, considering two types of moderating obstacles: resource and capability-related obstacles (lack of managerial willingness, skills, or financial resources) and feasibility-related obstacles (low consumer demand, misalignment with the current business model, or limited profitability). Initially, the analysis employs a logit and subsequently a multinomial logit regression on a global sample of 9000 firms from the Flash Eurobarometer 486 survey. The findings reveal that family firms demonstrate sustainability processes comparable to that of non-family firms when obstacles are absent or when multiple obstacles are present. However, family firms are more significantly affected by resource and capability-related obstacles than by feasibility obstacles. This pattern persists across different implementation stages. The lower propensity for family firms to adopt sustainable processes is linked to resource and capability limitations, despite their greater proactivity compared to non-family firms when faced with substantial feasibility obstacles.